September 7, 2004
Kobelco opens subsidiary in Vietnam

Kobelco Construction Machinery Co., Ltd. has formed a subsidiary in Vietnam called Kobelco Construction Machinery Vietnam Co., Ltd. Located in Bien Hoa, northeast of Ho Chi Minh City, Kobelco Construction Machinery Vietnam handles new and used construction machinery and provides spare parts and aftersales services.

Kobelco Construction Machinery Vietnam is a wholly owned subsidiary of Kobelco International (S) Co., Pte. Ltd. in Singapore, which in turn is a 100% subsidiary of Kobelco Construction Machinery Co., Ltd. in Japan. The new company began operating in late July. Plans call for the establishment of a branch in Hanoi later this year.

Demand for construction machinery in Vietnam is robust and Japan exports over 5,000 units of used construction equipment each year. Vietnam is aiming to enter the WTO and this development is anticipated to increase the market for new machines considerably.

On this background, Kobelco in recent years has been strengthening its marketing network in Southeast Asia, particularly Vietnam. Responding to the growing market, Kobelco opened a representative office in Ho Chi Minh City in October 2002 and a Hanoi office in October 2003.

The need to more effectively meet customer needs at the local level led to the establishment of Kobelco Construction Machinery Vietnam. In addition to new and used construction machinery, the new company offers spare parts and aftersales services.

These activities are anticipated to expand the presence of Kobelco and further develop the construction machinery business in Vietnam.